Current and Future Skill Needs Regional Skills Partnerships in a Global Economy Conference 23 June 2005 Reg D’Souza SEMTA Sector Skills Council for Science, Engineering and Manufacturing Technologies 14 Upton Road, Watford, Herts, UK WD18 0JT Tel:

Outline Role of SSCs SSA pathfinder report Priority skills issues from the SSA Future skills requirements SSCs and RSPs Challenges for RSPs

Role of SSCs Four key SSC goals: Improve productivity, business and public service performance. Increase opportunities to raise the skills and productivity of everyone in the sector. Improve learning supply, including Apprenticeships, Higher Educational and National Occupational Standards (NOS). Reducing skill gaps and shortages and anticipating future needs.

SSA pathfinder report SEMTA covers 13 broad sub-sectors Pathfinder report covers Electronics, Automotive and Aerospace Marine and Bioscience reports are in progress

SSA content The SSA has 5 components: Assessment of current and future skill needs Assessment of current provision Analysis of the gaps and weaknesses An assessment of the scope for collaborative action by employers Developing a costed action plan

Drivers of change affecting skills Rapid technological change Product life cycles Globalisation of the supply chain Intensification of competition Regulation All of the above have led to increased demand for higher-level skills.

Issues contributing most to the productivity gap UK compared to US: Working practices such as Lean manufacturing and High Performance Working. UK compared to France and Germany: Mainly due to skills, innovation and investment.

Priority skill issues Management and Leadership Productivity and Competitiveness Recruitment and Workforce Development

Management and Leadership Team leaders and front line supervisors, competent in high performance working. Managers need upskilling in commercialisation, financial management, lean principles and workforce development. Engineering and science graduates lack employability skills and need work experience

Productivity and Competitiveness New product and process development and implementation (NPPDI) Supply chain management Continuous improvement and Lean/Process Excellence

Recruitment and Workforce Development Increasing the supply of skills at N/SVQ Levels 3, 4 and 5 by upskilling and recruitment of under represented groups This will allow engineering to: meet the need to move to higher value products to remain globally competitive counter the low levels of young people coming into the engineering sector

Future skills requirements Professional engineering skills– greater demand to meet requirements for NPPDI, supply chain management, lean/process excellence and management and leadership skills Technician and craft level technical and practical skills - greater demand to meet need for higher value added processes Operator and assembler skills – less demand due to increased automation and changing technologies Basic skills – greater demand for basic literacy and numeracy skills to upskill the workforce to deliver globally competitive work practices

Supply side issues The quality and capability of recruits into the sector Provision Key barriers to training and development Information, Advice and Guidance

SSCs and RSPs SEMTA is working with West Midlands RSP: input into RSP data group response to Leitch review manufacturing skills profile learning and skills balance sheet

Challenges for RSPs Using a data driven approach Align and integrate training supply with employer demand Ensure employers understand their future skills needs